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CBNG operators produce coalbed
natural gas in the most environmentally friendly way possible - adhering
to rules and regulations, often doing more than what is required by
law.
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POWDER RIVER BASIN COALBED NATURAL GAS DEVELOPMENT: UNCONVENTIONAL AND LONG-TERM ENVIRONMENTAL OPPORTUNITIES Here, many ranches scattered throughout northeastern Wyoming and southeastern Montana used to walk a thin line as a result of both severe and extended drought. Things have changed. More than a decade has passed since development began and long-time ranchers like Sheridan’s Eddie Piltch see how CBNG development can coexist with agricultural operations. “It has been super,” said Piltch. “Not 100 percent but 120 percent.” Piltch is referring to the water that is produced along with the natural gas. Most ranchers agree: coalbed natural gas water is turning prairie-dog land in to productive land in the PRB. Beneficial Use = Environmental Opportunity Natural gas is held in place by water pressure in shallow coal seams all across the basin. In order to produce the gas, the water pressure must be released. At the beginning phases of a well, more water is produced than gas. As the gas production rises, water production decreases. Ranchers and operators beneficially use the water to support both livestock and agricultural operations using a variety of methods. Not one single method fits all uses so energy developers are promoting a “The Water Management Toolbox”. Landowners and operators work together to choose one tool or a set of tools that work best on a site-specific basis. Tools include: surface discharge, managed irrigation (where soil amendments aid in crop production), sub-surface irrigation, ponds, treatment, injection and commercial uses (for example dust abatement on heavily traveled roads for coal mines). The water has even been used to build commercial Tilapia fish farms and brew beer! The Coalbed Natural Gas Alliance (CBNGA), who’s mission is to inform, communicate and educate landowners, supports such beneficial uses. In a past survey they conducted, produced water was the number one benefit of CBNG development. In the survey, use of the water even surpassed the royalties mineral owners received from development. More Benefits Exist In addition to the water, revenues from mineral-rich counties allow Wyoming to enjoy a huge budget surplus. To examine the change in county revenue before and during CBNG development, the CBNGA conducted a tax analysis of both Sheridan and Johnson counties. Taxable values for minerals increased by an average of 1,444 percent in both counties in just six years because of CBNG development! From 2000-2006, both counties experienced huge property tax revenues. Johnson had a 499 percent increase and Sheridan had a 274 percent increase. The increase in property tax revenues is due to the increase in taxable value for minerals. In both counties, 62 percent of the county’s collected property taxes come from CBNG activity. Education receives the largest revenue distribution from property taxes. Three new schools have recently been constructed in both counties. Ranchers also say the infrastructure used to develop CBNG can drastically improve a ranch. Kendall Cox is a PRB ranch manager who thinks the opportunities landowners receive will aid in long- term sustainability for the ranch, once CBNG development is done. (A typical well in the PRB lasts for about 10 years, on average.) “Santa Claus is in town, handing out reservoirs, pipelines, power lines and all sorts of infrastructure which benefits the ranch in the long run. We should take the advantage while we have the chance and make a plan we can use to our benefit.” said Cox.
Responsible Development leads to Opportunities for Everyone Various polls indicate the majority of people living in Montana and Wyoming support environmentally responsible CBNG development. Operators must abide by and comply with all federal and state laws and regulations in order to develop the energy resource. In some cases, operators even exceed these requirements. Lasting friendships between landowners and operators are born. CBNG development is helping to quench the nation’s growing demand for natural gas, where more than 60 percent of homes use this clean-burning fuel as their main source of energy for heating. CBNG development also holds the potential to keep consumer prices stable by supplementing the nation’s energy supply. Out of the remarkable 25 trillion cubic feet of known reserves in the basin, only 2.3 trillion cubic feet have been recovered since development started in 1997. A rainbow of benefits has already resulted and less than 10 percent of the gas has been developed! More possibilities lie ahead for the Powder River Basin and the nation. |
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